HSBC 2006 Annual Report Download - page 371

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Details of all HSBC companies will be annexed to the next Annual Return of HSBC Holdings filed with the UK
Registrar of Companies.
All the above make their financial statements up to 31 December except for HSBC Bank Argentina S.A., HSBC La
Buenos Aires Seguros S.A. and Maxima S.A. AFJP, whose financial statements are made up to 30 June annually.
The principal countries of operation are the same as the countries of incorporation except for HSBC Bank Middle
East Limited which operates mainly in the Middle East, and HSBC Life (International) Limited which operates
mainly in Hong Kong.
Subsidiaries which experience significant restrictions on their ability to transfer funds to HSBC in the form of
cash dividends or to repay loans and advances
During 2006 and 2005, none of the Group’s subsidiaries has experienced significant restrictions on paying dividends
or repaying loans and advances.
Subsidiaries where HSBC owns less than 50 per cent of the voting rights
Subsidiary
HSBC’s
interest in
equity capital
Description of relationship
that gives HSBC control
%
2006
Beijing HSBC Insurance Brokers Limited 24.9 HSBC has the right to appoint the majority of the board,
therefore has management control.
HSBC Insurance Brokers (India) Private Limited 25.9 HSBC has the right to appoint the majority of the board,
therefore has management control.
HSBC Private Equity Fund 3 38.8 HSBC is the fund manager and controls the fund.
HSBC Global Technology Alpha Fund 23.9 The fund is a ‘Wider Purpose Fund’ and consolidation is
required under IAS 27 ‘Consolidated and Separate Financial
Statements’.
2005
Beijing HSBC Insurance Brokers Limited 24.9 HSBC has the right to appoint the majority of the board,
therefore has management control.
HSBC Insurance Brokers (India) Private Limited 25.9 HSBC has the right to appoint the majority of the board,
therefore has management control.
HSBC Private Equity Fund 3 38.8 HSBC is the fund manager and controls the fund.
HSBC Continental European Alpha Fund 6.1 The fund is a ‘Wider Purpose Fund’ and consolidation is
required under IAS 27.
HSBC Global Technology Alpha Fund 48.7 The fund is a ‘Wider Purpose Fund’ and consolidation is
required under IAS 27.
Investments where HSBC owns 20 per cent or more of the voting rights but does not classify the investment as
a subsidiary, joint venture or associate
Investment
HSBC’s
interest in
equity capital
Description of relationship that results in HSBC accounting
for entity as an investment
%
2005
Zhong-Run Company Limited 25.0 Entity is held by a venture capital organisation which is exempt
from classifying investments as associates under IAS 28.
In 2006 there were no significant investments where HSBC owned 20 per cent or more of the voting rights but did
not classify the investment as a subsidiary, joint venture or associate.
Acquisitions
HSBC made the following acquisitions of subsidiaries or business operations in 2006, which were accounted for
using the purchase method:
On 23 November 2006 HSBC acquired 99.98 per cent of Grupo Banistmo, S.A. (‘Banistmo’) for a total consideration
of US$1,968 million, comprising US$1,773 million in cash and US$195 million in contingent consideration. The
contingent consideration is in respect of a binding offer to preference shareholders for the purchase of their